Key points of investment
2024 Q1 performance: 44% year-on-year increase; expect TopCon and xBC laser equipment to flourish 1) Performance: revenue of 450 million yuan, up 29.6% year on year; net profit to mother of 135 million yuan, up 44.5% year on year.
2) Profitability: gross profit margin 48.7%, up 1.6 pct year on year; net profit margin 30%, up 3.1 pct year on year.
3) Orders: As of the end of the first quarter of 2024, the company's contract debt was 1.97 billion yuan, an increase of 120.4% over the previous year.
4) R&D expenses: Q1 2024 reached 70 million yuan, a year-on-year increase of 60.3%, accounting for 15.5% of revenue.
2023: Performance increased 12% year over year; orders increased high, contract debt increased 171% year over year 1) Performance: Revenue of 1.61 billion yuan, up 21.5% year on year; net profit to mother was 450 million yuan, up 12.2% year on year.
2) Profitability: In 2023, the company's gross profit margin was 48.4%, up 1.3 pct year on year, benefiting from the release of new XBC and TopCon products and maintaining a high level; the net profit margin was 28.7%, down 2.4 pct year on year, mainly due to the increase in R&D investment.
3) Orders: As of the end of 2023, contract liabilities reached 1.96 billion yuan, an increase of 171.3% over the previous year.
4) R&D expenses: In 2023, it reached 250 million yuan, an increase of 91.7% year-on-year, accounting for 15.6% of revenue.
Leading photovoltaic laser equipment, benefiting from multiple technology iterations such as TopCon and xBC; extended layout in the semiconductor/display packaging field 1) TopCon batteries: The company achieved mass production orders for TopCon laser doping (TCSE) and laser-induced sintering (LIF) equipment, benefiting from the TopCon industry's production expansion needs. Among them, LIF equipment increased efficiency by more than 0.3% and reduced single bank consumption by more than 20%.
2) xBC battery: Laser ablation is standard for opening the passivation layer on the back side of BC batteries, replacing traditional lithography, greatly simplifying the process, and reducing costs. The company has a leading layout and has received orders from leading customers.
3) HJT batteries: LIA laser repair equipment can reduce dark attenuation of HJT batteries and improve conversion efficiency, and has been ordered by European customers.
4) Component welding: It can simplify the production process, reduce battery damage, and improve welding quality. Mass production prototypes have now been delivered.
5) TGV laser microporous equipment: Through precision control systems and laser modification technology, glass substrates of different materials can be processed with microholes and microgrooves. Used in semiconductor chip packaging, display chip packaging and other fields.
Profit forecast and valuation: Multi-technology products are expected to relay volume, moving from auxiliary equipment to core main equipment and opening up room for growth. The company's net profit for 2024-2026 is estimated to be 6.1/7.4/8.8 billion yuan, an increase of 32%/21%/20% over the previous year; the corresponding PE is 18/15/13 times. Maintain a “buy” rating.
Risk warning: The sharp expansion of production has led to a deterioration in the competitive pattern, the increase in silicon prices affects terminal demand, and the risk of technology iteration.